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U.S. Courts Rejects California Law On Insurance Claims For Armenians

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  • U.S. Courts Rejects California Law On Insurance Claims For Armenians

    U.S. COURTS REJECTS CALIFORNIA LAW ON INSURANCE CLAIMS FOR ARMENIANS
    By Lisa Leff

    ClaimsJournal.com
    http://www.claimsjournal.c om/news/west/2009/08/24/103236.htm
    Aug 24 2009

    A federal appeals court invalidated a California law Thursday that
    allowed heirs of Armenians killed in the Turkish Ottoman Empire
    nearly a century ago to seek payment on the life insurance policies
    of dead relatives.

    Advertisement The 9th U.S. Circuit Court of Appeals in San Francisco
    said the law amounted to unconstitutional meddling in U.S. foreign
    policy.

    It based its 2-1 ruling on a 2003 U.S. Supreme Court decision that
    struck down another California law designed to help Holocaust survivors
    collect on Nazi-era insurance policies.

    The federal government does not recognize the mass killings of
    Armenians during World War I as genocide, but the California
    Legislature did in 2000 when it enacted the disputed law.

    About half of the people of Armenian descent living in this country
    reside in California.

    Lawyer Brian Kabateck, who represents Armenian-American heirs, plans
    to appeal.

    "The ruling is wrong. It's a disaster," Kabateck said. "The one million
    Armenians that live in California today have been told by the court
    that even the use of the word 'genocide' by a government is illegal."

    If the ruling is not set aside, it would prevent Armenian heirs from
    claiming inheritances and prohibit California and other states from
    marking the anniversary of the onset of the ethnic bloodshed that
    claimed the lives of up to 1.5 million Armenians between 1915 and
    1919 in what is now eastern Turkey, Kabateck said.

    He alleges European banks and insurers illegally retained assets
    valued in 1915 at about $15 million, a sum worth substantially more
    at today's value.

    The California Legislature passed the law giving heirs of Armenians
    who died or fled to avoid persecution until the end of next year to
    file claims for old bank accounts and life insurance policies.

    Class-action lawsuits brought by Armenian descendants in California
    and other states led to a $20 million settlement with New York Life
    Insurance Co. in 2005 and a $17 million settlement the same year with
    French life insurer AXA.

    William Werfelman, a spokesman for New York Life, said the company
    had no intention of trying to get back any of the money it paid out
    under the 2005 settlement.

    "By acting honorably, and in keeping with our company values of
    humanity and integrity, New York Life made many friends in the Armenian
    community and we cherish these friends," Werfelman said.

    Thursday's ruling reversed a lower court judge who refused to dismiss
    another class-action suit against the German life insurance companies.

    Turkey long has denied the loss of so many Armenian lives constituted
    genocide and instead describes the deaths as resulting from civil
    unrest that accompanied the collapse of the Ottoman Empire.

    The appeals court agreed with the German companies that California's
    policy improperly conflicted with the federal government's foreign
    policy aims.

    Neil Soltman, the lawyer who represented the German insurance companies
    that prevailed in the case, said his clients had stood to lose in
    payouts to Armenian-Americans in California. Soltman said it was not
    clear the companies ever sold life insurance policies to victims of
    the Ottoman Empire violence.

    "We are very pleased with the decision. We think it is entirely
    consistent with recent Supreme Court cases and 9th Circuit cases
    which have held that California and other states should not be passing
    legislation that deals with questions of foreign affairs," he said.

    The court recounted successful efforts by former presidents Bill
    Clinton and George W. Bush to defeat congressional legislation that
    would have recognized an Armenian genocide.

    U.S. Rep. Adam Schiff, who as a state assemblyman co-wrote the law
    that was overturned by the 9th Circuit, was perplexed by the court's
    reasoning.

    "You have a group of people that has a government that hasn't had
    the will to recognize the genocide and as a result of that failing,
    are being told they don't have valid insurance claims," he said.

    From: Emil Lazarian | Ararat NewsPress
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